24 April 2013
I recieved allotment for a under construction property in Feb 2010, under construction linked plan. I sold this property in April 2013, more than three years after allotment, but before taking posession. As such, I believe my gain should be "long term". However, as the property was bought in construction linked plan, some payments were made in 2011 and 2012- it hasnt been three years since. Could you pls tell me if my gain on the property is long term or short term? Thanks
24 April 2013
Long term capital gain will arise in such transaction. Time to be seen from the date the right to receive the property was acquired till the date it is transferred. calculate the indexed cost of payment as the purchase consideration.
24 April 2013
Thanks so much. Is there any clause or case law I can refer to that clearly explains that this will be a long term gain? Your help is much appreciated!
25 April 2013
Dear Experts, Any thoughts on this? Any Section/ Clause/ Case Law I can refer to that confirms that term (long/ short) is to be calculated from the date of allotment letter and not seperately for each payment made under the construction linked plan (in which case some payments may be long term and some may be short term)? Thanks
08 June 2013
The moment you have been allotted the flat you are the right of ownership provided you have paid the consideration. Hence, if you sale after 3 years you have to either purchase a new property and if value is less then 54EC by depositing the money in bonds or you can avail 54F
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